The insurance industry has been relatively stable for many years, but Insurtech and the COVID -19 pandemic are shaking it up like never before. Consequently, customer demands are changing, technology is advancing, data is increasing, natural disasters are impacting, demographics are shifting, and regulations are evolving. These factors have combined to shake the industry to its core.
The former – (Insurtech), facilitates a technological shift that will help the global market deal with the latter (- COVID-19’s) negative effects. Even if Insurtech were not as widely accepted in the industry, it would be a crucial aspect of the insurance sector’s recovery from this global crisis.
Evolution from traditional to remote claims management system
The traditional claim processing systems are opaque, cumbersome, prone to costly errors, and time-consuming, thus rendering an already vulnerable customer to question the choice of their preferred insurance provider.
On the other hand, insurers must ensure that they handle the process with utmost accuracy to prevent underpayments and overpayments of the indemnity obligations.
Customers now expect their insurance to be more like digital retail experiences – integrated, transparent, and seamless. They want to conduct business when they want, where they want, using the channel of their choice. Technology can make this possible by facilitating a more integrated, transparent, and seamless claim adjudication process.
With big data, insurers can now collect more volumes and a variety of data. Artificial intelligence can help insurers to make sense of this data quickly, allowing them to personalize their approach to risk management, reduce their liabilities, and lower premiums.
In the past, a common strategy for insurance companies was to wait and see if a new direction or product launched by competitors was successful before making any changes. But that strategy doesn’t work in today’s disruptive environment with new competitors outside the insurance industry. These changes have led to the emergence of modern ways of working and competitive business models.
Digital transformation can help insurers to use smart technologies for claims management solutions to re-imagine and streamline outdated and inefficient processes. For this to happen, the remote claims assessment departments must collaborate with other functions, such as marketing and IT. This transformation requires new roles, like data scientists, customer journey “owners,” and user experience designers.
As this new approach can represent a substantial change, success depends on deeply integrating a digital way of working into the entire organization. A capability agenda is a great way to get your team from where they are today to tomorrow’s success story. By taking the time to understand which capabilities your organization needs to focus on, you can develop a plan that will help everyone stay on track and improve your insurance company’s chances of success.
Successful organizations tap joint cross-functional management teams to lead the effort, develop experts in all digital methods, and provide intensive coaching for all relevant employees. Finally, this digital way of working must be instilled in the organization.
The outbreak of COVID-19 has caused a shift in how the insurance industry operates, with remote claims management becoming more common.